The flexible workforce has played a critical part in helping to drive
the economic recovery that the UK is now experiencing. It's also clear
that this UK ‘competitive advantage’ needs to be appropriately supported
moving forward.Appropriate support, in my view, would include a period
of legislative stability.

But there are some positives. The OTS document,
and various recent communications from government and policy makers, is
continuing to evidence that the importance of the flexible workforce in
general, and self-employed workers in particular, is becoming much more
recognised and that these workers are increasingly valued.

The government is acknowledging that working patterns and ways of
working have changed and will continue to develop as we move forward –
that is positive too. And the OTS's aim to ensure the legislative
environment recognises this and supports the flexible workforce and self
employment appropriately, is the right one.

So this consultation is another opportunity to educate and inform
further in this extremely important part of UK economic activity.Our
firm will engage fully with the OTS team on this consultation on behalf
of our customers, and contractors and freelancers more generally, to
ensure the consultation produces a fully informed output.I am
optimistic that the output will further evidence the government’s
understanding of -- and commitment to -- this critical resource pool.

Recently however there have been a number of questions from the industry about how IR35 can be excluded from a consultation on self-employment status.While I
understand this concern, I can also see why the OTS has said it won’t
consider the legislation, in light of the recent House of Lords review
into the rule.Ultimately, all the IR35 legislation does is apply the
existing employment status case law to those situations where an
individual is working through an intermediary. This legislative
requirement will remain unaffected by any changes to the way
self-employment is determined post-consultation. So any new legislation
or approach will simply need to be applied via IR35 in the same way the
current law is.

Overall, another review in this area is not ideal, given all of the
recent review and consultation activity, which seems to render this
latest project unnecessary. That said, there are always positives in any
review like this, particularly if the right people are involved in the
consultation.